Template:M summ Equity Derivatives 6.7: Difference between revisions

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(Created page with "If you are in the business of trading equities, one thing you might worry about is your own lousy timing. If the point at which you decided to trade out of your position, there just happened to be some transient oompah that sent the market crazily higher, or lower, you might wind up closing out your position, or just being margined on it, at a bad price because, them’s the breaks. Now the sort of fellow who is active in the market and trades a lot ought to be able to...")
 
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If you are in the business of trading equities, one thing you might worry about is your own lousy timing. If the point at which you decided to trade out of your position, there just happened to be some transient oompah that sent the market crazily higher, or lower, you might wind up closing out your position, or just being margined on it, at a bad price because, them’s the breaks.
[[Averaging - Equity Derivatives Provision|If]] you are in the business of trading equities, one thing you might worry about is your own lousy timing. If the point at which you decided to trade out of your position, there just happened to be some transient oompah that sent the market crazily higher, or lower, you might wind up closing out your position, or just being margined on it, at a bad price because, them’s the breaks.


Now the sort of fellow who is active in the market and trades a lot ought to be able to make peace with this risk, because it naturally irons itself out: most days, you’ll get a fair price; somedays you’ll be freakily to the bad, other days, freakily to the good. It is just the cost, as B.B. King would say, of bein’ the boss.
Now the sort of fellow who is active in the market and trades a lot ought to be able to make peace with this risk, because it naturally irons itself out: most days, you’ll get a fair price; somedays you’ll be freakily to the bad, other days, freakily to the good. It is just the cost, as B.B. King would say, of bein’ the boss.